Vale says quarterly iron ore production highest since 2018
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Vale (NYSE:VALE) +1.1% in Wednesday’s trading after reporting its highest iron ore production in nearly six years during Q3, rising 5.5% to 91M metric tons for its best quarterly total since Q4 2018.
The company said the gains were the result of improved performance at a trio of Brazilian mining projects: S11D, Itabira and Brucutu.
Vale (VALE) said the Q3 average realized price of its iron ore fines fell nearly 14% Y/Y and 7.7% Q/Q to ~$91/ton in the quarter.
Q3 copper production increased 5% Y/Y to 85,900 tons, reflecting stronger performance across all operations, and nickel output jumped nearly 12% Y/Y to 47,100 tons, due to stronger performance at the Sudbury project and the ramp-up of Voisey’s Bay underground mines, both in Canada.
Analysts at RBC Capital said Vale’s (VALE) production results came in above expectations across the entire portfolio and the company is on track to achieve its full-year guidance.
Last month, Vale (VALE) raised its 2024 iron ore forecast to 323M-330M tons after a stronger than expected H1, which the company attributed to continued improvements on operational stability and asset reliability.
While Vale’s (VALE) Q3 sales volumes lagged production, the company expects reduced inventory build at the iron ore division in Q4, which RBC analysts said should translate into an upgrade of market estimates for 2024 core earnings.